Correlation Between Schoeller Bleckmann and Gurktaler Aktiengesellscha
Can any of the company-specific risk be diversified away by investing in both Schoeller Bleckmann and Gurktaler Aktiengesellscha at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Schoeller Bleckmann and Gurktaler Aktiengesellscha into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Schoeller Bleckmann Oilfield Equipment and Gurktaler Aktiengesellschaft, you can compare the effects of market volatilities on Schoeller Bleckmann and Gurktaler Aktiengesellscha and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Schoeller Bleckmann with a short position of Gurktaler Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schoeller Bleckmann and Gurktaler Aktiengesellscha.
Diversification Opportunities for Schoeller Bleckmann and Gurktaler Aktiengesellscha
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Schoeller and Gurktaler is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Schoeller Bleckmann Oilfield E and Gurktaler Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gurktaler Aktiengesellscha and Schoeller Bleckmann is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Schoeller Bleckmann Oilfield Equipment are associated (or correlated) with Gurktaler Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gurktaler Aktiengesellscha has no effect on the direction of Schoeller Bleckmann i.e., Schoeller Bleckmann and Gurktaler Aktiengesellscha go up and down completely randomly.
Pair Corralation between Schoeller Bleckmann and Gurktaler Aktiengesellscha
Assuming the 90 days trading horizon Schoeller Bleckmann Oilfield Equipment is expected to generate 1.98 times more return on investment than Gurktaler Aktiengesellscha. However, Schoeller Bleckmann is 1.98 times more volatile than Gurktaler Aktiengesellschaft. It trades about 0.05 of its potential returns per unit of risk. Gurktaler Aktiengesellschaft is currently generating about -0.18 per unit of risk. If you would invest 2,835 in Schoeller Bleckmann Oilfield Equipment on August 26, 2024 and sell it today you would earn a total of 55.00 from holding Schoeller Bleckmann Oilfield Equipment or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Schoeller Bleckmann Oilfield E vs. Gurktaler Aktiengesellschaft
Performance |
| Timeline |
| Schoeller Bleckmann |
| Gurktaler Aktiengesellscha |
Schoeller Bleckmann and Gurktaler Aktiengesellscha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Schoeller Bleckmann and Gurktaler Aktiengesellscha
The main advantage of trading using opposite Schoeller Bleckmann and Gurktaler Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Schoeller Bleckmann position performs unexpectedly, Gurktaler Aktiengesellscha can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Gurktaler Aktiengesellscha will offset losses from the drop in Gurktaler Aktiengesellscha's long position.| Schoeller Bleckmann vs. Voestalpine AG | Schoeller Bleckmann vs. Andritz AG | Schoeller Bleckmann vs. Wienerberger AG | Schoeller Bleckmann vs. OMV Aktiengesellschaft |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |